To investigate transonic flows in and around an S-type inlet, the full Navier-Stokes equations in compressible form were solved numerically. MacCormack's explicit scheme was employed to discretize the governing equations. For the verification of the code developed in the present study, the flow over an 18% thick circular-arc biconvex airfoil at zero angle of attack at the free stream Mach number of 0.775 was calculated. The results of the computation agreed very well with the established previous data. The computation for the S-type inlet flow was carried out using a $45\times84$ mesh. The free stream Mach number was 0.7. The converged flow field revealed that a small separation bubble exists in the upper shroud of the duct. Throughout the computation, the Baldwin-Lomax model was utilized to model the turbulence.